Identifying stocks to buy and hold for decades can be challenging because it is always difficult to anticipate long-term economic shifts and risks.
However, large-cap companies that have steady or growing profits and leading market shares in stable industries can provide the type of reliability that investors are looking for. These types of firms often tend to pay dividends, and dividends can play a particularly important role in long-term returns. In fact, dividends have accounted for about 40% of total stock market returns over the past 90 years.
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The seven stocks included below are all attractively valued dividend stocks that offer investors a compelling mix of security, income and upside potential, according to Bank of America analysts:
| Stock | Dividend yield | Implied upside* |
| UnitedHealth Group Inc. (ticker: UNH) | 2.2% | 19% |
| Chevron Corp. (CVX) | 3.7% | 9% |
| Coca-Cola Co. (KO) | 2.6% | 16% |
| Procter & Gamble Co. (PG) | 2.9% | 11% |
| Home Depot Inc. (HD) | 2.8% | 13% |
| Merck & Co. Inc. (MRK) | 2.7% | 11% |
| International Business Machines Corp. (IBM) | 3.3% | 36% |
*Based on the July 22 market close.
UnitedHealth Group Inc. (UNH)
UnitedHealth is the largest U.S.-managed healthcare firm, providing health plans and healthcare services to a wide range of customers. Its operations include its UnitedHealthcare health insurance business, its OptumRx pharmacy benefit manager business and its Optum Health integrated care delivery business. Analyst Kevin Fischbeck says UnitedHealth’s recent guidance hike provides improved financial visibility for investors, and he anticipates the company will reach between $24 and $37 in earnings per share in 2028. Fischbeck says managed care operators have significant earnings upside. Bank of America has a “buy” rating and $512 price target for UNH stock, which closed at $431.31 on July 22.
Sector: Healthcare Yield: 2.2%
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, petrochemical and refining, and marketing businesses. In 2025, Chevron acquired Hess following nearly two years of regulatory uncertainty. Analyst Jean Ann Salisbury says Chevron has further upside than its 29% year-to-date gain given its low exposure to Middle East risk and its relatively high upside from normalization of Venezuela operations. Salisbury says Chevron has an impressive asset portfolio and is her top overall pick among integrated energy and refining stocks. Bank of America has a “buy” rating and $210 price target for CVX stock, which closed at $192.98 on July 22.
Sector: Energy Yield: 3.7%
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. In June, Coca-Cola announced it is exploring a potential 2027 initial public offering of Hindustan Coca-Cola Holdings, the parent company of the largest Coca-Cola bottler in India. Analyst Peter Galbo says Coca-Cola is a best-in-class operator with a clear strategic vision and a healthy balance of profitable, stable developed markets and potentially high-growth investment markets. Galbo says Coca-Cola’s strong balance sheet gives it exceptional flexibility, and its asset-light model insulates it from inflationary pressures in a resilient demand environment. Bank of America has a “buy” rating and $95 price target for KO stock, which closed at $82.20 on July 22.
Sector: Consumer staples Yield: 2.6%
[Read: 9 Highest Dividend-Paying Stocks in the S&P 500]
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns a number of popular brands, including Pampers, Tide and Gillette. Galbo says Procter is one of the giants of the consumer staples sector and has multiple billion-dollar, global brands that have leading market shares of their respective markets. He says the company’s initiative to focus on its core product portfolio has helped it navigate a challenging environment and is starting to bear fruit in the profitability department. Galbo predicts P&G could report consistent sales beats in coming quarters. Bank of America has a “buy” rating and $166 price target for PG stock, which closed at $149.13 on July 22.
Sector: Consumer staples Yield: 2.9%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. The company caters to both professional contractors and do-it-yourself home improvement amateurs, selling a wide range of building, decorating, and lawn and garden products and services. Analyst Christopher Nardone says Home Depot’s Pro business now accounts for about 50% of total sales, which will allow the company to outgrow its home improvement competitors even in a lukewarm housing market. Nardone says Home Depot has a track record of market share gains and superior execution. Bank of America has a “buy” rating and $374 price target for HD stock, which closed at $331.45 on July 22.
Sector: Consumer discretionary Yield: 2.8%
Merck & Co. Inc. (MRK)
Merck is one of the world’s largest pharmaceutical companies, and its leading products include cancer drug Keytruda and HPV vaccine Gardasil. Analyst Jason Gerberry says a combination of strong ongoing performance from Keytruda and other core Merck commercial drugs coupled with new drug launches and a favorable risk-reward balance makes Merck an excellent investment. Gerberry says the company’s recent acquisitions have also de-risked its outlook beyond 2027. He sees a path for cancer drug sacituzumab tirumotecan to generate peak annual sales of greater than $10 billion. Bank of America has a “buy” rating and $141 price target for MRK stock, which closed at $127.47 on July 22.
Sector: Healthcare Yield: 2.7%
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. The company’s four major segments include Infrastructure, Consulting, Software and Financing. IBM’s stock plummeted in July after the company reported a surprise preliminary second-quarter sales and earnings miss, but analyst Wamsi Mohan says IBM remains well positioned to generate impressive software segment growth if investors can overlook the execution issues that led to the poor quarter. Mohan says IBM’s cost-cutting opportunities, solid balance sheet and recurring revenues make it a quality defensive investment. Bank of America has a “buy” rating and $280 price target for IBM stock, which closed at $205.77 on July 22.
Sector: Technology Yield: 3.3%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 07/23/26: This story was published at an earlier date and has been updated with new information.
